Showing posts with label financial security. Show all posts
Showing posts with label financial security. Show all posts

Monday, September 10, 2012

Investing in Real Estate Could Be
(even in these market conditions)
a GREAT wealth building tool.
 
Here are some strategies that are shared in the book "HOLD" written by Gary Keller

The Power of Leverage

Leverage is using other people's money (banks, mortgage companies, and owner financiers) to make money. Leverage multiplies your profit.

The Power of Leverage in real estate investments: Equity Build up

  1. At the time a property is purchased you are at Market Value - little equity, little investment (20% down) and a lot of debt.
  2. After some time, your Equity begins to grow. Your investment is still the same at time of purchase, and your debt is going down.
  3. The equity begins to build while the debt is going down
  4. eventually, when you have paid off the mortgage, your market value has gone up, your debt is gone, and all you have left is equity in a property that is worth more than it was when you bought it, and your investment never changed.

Contact The Korn Team if you would like to see the graphic of what this looks like. Remember, it is about doing it RIGHT!

  • Buy it RIGHT!
  • Pay it down
  • Pay it off

Thursday, August 30, 2012

Why is building wealth with real estate right for you?

If you are looking for financial security, retirement plans, pay for college for kids, travel fund, giving to others in need or if you want to leave a legacy to your friends, family and those who know you....real estate can be one of the best sources of wealth building in America...even in the roughest economies we have had. In fact, real estate might be the safest investment in any of the past economies we have ever seen.

Did you know:

  • 58% of people have not determined their retirement needs?
  • 15% of people are earning $50,000-plus in retirement?
  • 17.5% of people 65 or older are delaying retirement?
  • The median household income is only $50,000 per year

What does all this mean? If someone needs $80,000 a year today to maintain a lifestyle, and that person plans to retire in 15 years, and we know inflation will continue to increase on an average of 3% per year....that person would need $120,000 a year when they retire.

Other scary statistics about retirement plans:

  • 87% of Americans rely on Social Security for some source of retirement
  • 53% of Americans rely on income from assets for retirement
  • 42% of Americans rely on public or private pensions for retirement
  • 26% of Americans rely on earnings for retirement